Math 370X - Quiz 11Saumil PadhyaNovember 28, 2016Name Net ID1.The owner of an automobile insures it against damage by purchasing an insurance policywith a deductible of 250. In the event that the automobile is damaged, repair costs can bemodeled by a uniform random variable on the interval (0, 1500).Calculate the standard deviation of the insurance payment in the event that the automobile isdamaged.(A) 361(B) 403(C) 433(D) 464(E) 5212.An insurance policy is written to cover a loss, X, where X has a uniform distribution on [0,1000]. The policy has a deductible, d, and the expected payment under the policy is 25% ofwhat it would be with no deductible.Calculate d.(A) 250(B) 375(C) 500(D) 625(E) 75013.A baseball team has scheduled its opening game for April 1. If it rains on April 1, the gameis postponed and will be played on the next day that it does not rain. The team purchasesinsurance against rain. The policy will pay 1000 for each day, up to 2 days, that the openinggame is postponed.The insurance company determines that the number of consecutive days of rain beginning onApril 1 is a Poisson random variable with mean 0.6.Calculate the standard deviation of the amount the insurance company will have to pay.(Hint: Use the conditional variance formula)(A) 668(B) 699(C) 775(D) 817(E) 9044.An insurance policy reimburses dental expense, X, up to a maximum benefit of 250. Theprobability density function for X is:f(x) = ce−0.004x, x > 0where c is a constant.Calculate the median benefit for this policy.(A) 161(B) 165(C) 173(D) 182(E)
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